Hinsdale Community Consolidated School District 181 Board of Education Finance Committee met Feb. 17.
Here are the minutes provided by the committee:
Call of Meeting
The Board of Education Finance Committee meeting of Community Consolidated School District 181, DuPage and Cook Counties, Illinois, was called to order by Board Member and Finance Committee Co-Chair Asim Aleem at 5:00 p.m. on Tuesday, February 17, 2026.
Roll Call
Finance Committee members present were Dr. Hector Garcia, Asim Aleem, Mindy Bradford, Adam East, Mike Martin, Jerry Mejdrich, Mike Duggan, and Catie Orihuela. Jean Duggan, Recording Secretary, was also present.
Special Guest: Matt Hannigan of PFM Asset Management Company.
Pledge of Allegiance
Mindy Bradford led the Pledge of Allegiance.
Public Comment
No public comments.
Approval of Minutes
Asim Aleem made a motion to approve the minutes from the January 20, 2026, Finance Committee meeting. Adam East seconded the motion. The motion carried.
Celebrations and Reminders
Mrs. Bradford noted the following celebration and reminders:
Celebrations and Reminders:
● Wellness Committee Successes
○ Distributed eye masks before the holidays to remind staff to focus on self-care and to thank them for all they do for this district. The new activity was well-received by staff.
○ The new” Pack Your Healthy Lunch” campaign was a huge success.
○ The committee is actively planning the Annual Steps Challenge (upgraded for increased engagement).
○ The committee and Marsh team are starting to plan for the Wellness Fair that happens at the June Institute Day (more vendors & staff prizes to encourage increased participation).
Discussion Topics
Investment Program Update
Mr. Matt Hannigan of PMF Asset Management, Inc., provided a quarterly update on the District’s investment program. Below are highlights of his presentation based on the quarter ended December 31, 2025, and since inception:
Market Update/Current Market Themes
The U.S. economy remains resilient, but the recent government shutdown obscures the data
■ Inflation print is likely biased due to data collection gaps and technical adjustments
■ Unemployment rate trends higher with new job creation near zero
■ Strong consumer and business spending, along with steadier trade dynamics, support growth
The Fed lowered the target rate by 50 basis points in Q4 to 3.50% – 3.75%
■ Fed Chair Powell acknowledged ongoing challenges in achieving the Fed’s dual mandate of maximum employment and price stability
■ The Fed’s December “dot plot” indicates 25 bps of cuts in both 2026 and 2027, but the wide dispersion in underlying projections highlights differing views on the path forward
■ Market view policy is skewed towards additional easing, assuming a more dovish Chair takes office in mid-2026
The Treasury yield curve continues to steepen but remains inverted within 2 years. ● Front-end Treasury yields fell during the fourth quarter amid expectations of a Fed rate cut.
● Yields were range-bound as volatility waned into year-end
● Credit spreads widened marginally but remain near historically narrow levels
Long Term Portfolio
● Total Market Value as of December 31, 2024 = $16,362,570 (up approximately $5.7MM from 12/31/24, including the planned and approved $5M shift from the short-term portfolio in June 2025)
● Duration = 1.78 years (up .03 from 12/31/24)
● Yield at Cost = 4.04% (down .27 from 12/31/24)
● Yield at Market = 3.60% (down .75 from 12/31/24)
At a return rate of 3.35% (annualized, net of fee), the district’s long-term portfolio has outperformed the related benchmark by 16 basis points, net of fee, since inception (March 31, 2022), similar to the 17 bp outperformance since inception as of December 31, 2024.
Portfolio performance has exceeded the benchmark return, net of fees, over the past quarter (1 bps), the past year (14 bp), and the past three years (15 bp).
Short Term Portfolio
● Total Market Value as of December 31, 2025 = $37,059,056 (down approximately $7.9MM from 12/31/24, including our planned and approved $5M shift to the long-term portfolio in June 2025)
● Duration = 0.27 years (up .06 years from 12/31/24)
● Yield at Cost = 3.79% (down .88 from 12/31/24, as yield curve has inverted and rates have reduced)
● Yield at Market = 3.75% (down .81 from 12/31/24)
At a return rate of 4.06% (annualized, net of fee), the district’s short-term portfolio has outperformed the related benchmark by 10 basis points, net of fee, since inception (December 31, 2021), similar to the 9 bp outperformance since inception as of December 31, 2025.
Portfolio performance has exceeded the benchmark return, net of fees, over the past quarter (6 bps), the past year (12 bps), and the past three years (9 bps).
Investment Strategy – Overview
Segmenting Portfolio
The District has established two operating investment portfolios based on its cash flow requirements.
Long-Term Portfolio:
● Intermediate/Long Term Strategy: 1-3 Year Benchmark
● Operating reserve funds are invested for the long term to generate investment income
● Actively managed to maintain duration and enhance earnings
● Added $5 million to the long-term portfolio (transfer from short-term) on June 26, 2025
Short-Term Portfolio:
● Short-Term Strategy: 3-Month Benchmark
● Cash flow-driven portfolio, optimized with targeted maturities to fund anticipated cash flow needs.
● Ensure sufficient liquidity to meet daily operating needs while placing short-term investments to increase potential investment income.
Diversifying the Portfolio
Long-Term Portfolio
● Diversified amongst investment types allowable under the Public Funds Investment Act & Investment Policy
○ Treasuries, Agencies, Corporate Notes, Agency Mortgage Backed, Supranationals, etc.
Short Term Portfolio
● Highly liquid, short-term investment types
○ Primarily utilizing LGIP, T-Bills, and high-quality Commercial Paper investments.
Investment Strategy – Looking Ahead
Federal Reserve
● Current Target Fed Funds Rate – 3.50% to 3.75%
● Current Market Expectation for Fed Rate Cuts– 2 cuts in 2026 and 2027
● 1st Rate Cut in 2026 fully priced into the market for June or July 2026
Yield Curve
● The Yield Curve remains slightly inverted on the short end but has steepened beyond 2 years.
● Commercial Paper is looking more attractive recently, as liquid rates have come down and the market expects more Fed Rate Cuts on the horizon.
● While rates have come down from the 20-year highs we saw in 2023 and 2024, the longer end of the yield curve has steepened relative to the short end.
Strategy Implications
● Short-Term Portfolio: Continue to monitor the value between the LGIP and fixed-rate short-term investment options. As Fed Rate cuts become more likely, the District will look to lock in short-term investments more frequently than it does in this inverted yield curve environment.
● December 2025 Commercial Paper purchases @ 3.77% to 3.81% (current IIIT Class Yield at 3.70% as of 1/26/26)
● Long-Term Portfolio:
Continue to maintain an active management strategy for 1-3 years. Diversification from Treasury should continue to add value.
● Yields remain attractive from a historical perspective (still exceeding long-term averages).
● While spreads on Corporates and Agency Mortgage-Backed have continued to tighten, they are still offering value relative to comparable-maturity treasuries, roughly 40-50 basis points. Diversification should continue to add value.
● Still a good entry point for new money into intermediate/long-term portfolios
Items for Recommendation.
Monthly Financials
Mrs. Bradford shared the following:
Operating Funds Year to Date:
● $39.4 MM: Trending favorable
○ Includes a planned $2 million relief to the taxpayers
● Revenue $42.2 MM: Trending favorably
● Expenses $39.2 MM: Trending favorably
The committee agreed and supported the recommendation to bring this item forward for Board approval.
Abatement Amount Decision/Resolution
Mrs. Bradford shared that at the November 9, 2020, Board of Education meeting, the Board initially approved the recommendation for the District’s Abatement Strategy. That initial strategy has remained consistent since adoption and has been re-approved by the Board on an annual basis, following discussion and confirmation that it remains sound. That strategy includes a requirement to adjust the yearly proposed Abatement amount if the District’s Operating Fund Balance exceeds 50%, unless the Board has specifically restricted the balance over 50% for a specific purpose.
She said that, with assistance from the District’s financial advisor, Bob Lewis from PMA, the District worked to identify the best way to fulfill its fiduciary responsibility, not only to the District but also to the taxpayers. This analysis led to the plan to abate some of the Bond and Interest Levy that was not required to fund the related bond and interest payments.
Choosing to abate the Bond and Interest, rather than the Operating Funds, helps ensure a more stable/flexible rate without a permanent, compounding negative impact on the District’s Operating Funds. She explained that the purpose of these proposed abatements is to reduce the debt service portion of the community’s tax bills until the district’s ongoing annual debt service requirements are lower.
Mrs. Bradford recommended the following Bond and Interest Abatement amount:
● 2025 Estimated Total Bond and Interest Levy – $5,396,950
● Abatement Amount: – $2,000,000
● Adjusted/Net Bond & Interest Levy – $3,396,950
The committee agreed and supported the recommendation to bring this item forward for Board approval.
Digital Learning Device Refresh
Mrs. Bradford shared that the administration was seeking Board approval to purchase 475 Chromebooks and related materials. She said the approval would allow the administration to continue supporting the Digital Learning Environment by replacing outdated equipment in accordance with the district’s previously approved device refresh schedule.
The plan is to purchase new Chromebooks for incoming 6th-grade students. These students will receive a new Chromebook to use throughout their three years in middle school.
The specifications of the equipment are as follows:
● 475x Lenovo 500e 2-in-1 Chromebook – 12.2″ – MediaTek Kompanio 2.6G – 8 GB RAM – 64 GB
● 475x Google Workspace licenses for Chrome
● 475x Targus Work-in Case (Model TKC001)
These proposed models are almost identical to the ones purchased in the Spring of the 2024-25 school year for use during the 2025-2026 school year.
The total purchase price of the Chromebooks and related materials is $232,441.25. The District’s FY26 Budget included a placeholder of $250,000 for the purchase of these devices, so the proposed purchase fits comfortably within the Budget.
Once approved, the Technology Department will work to procure and provision the equipment as quickly as possible to ensure that all devices are ready for students at the beginning of the 2026-2027 school year.
The committee agreed and supported the recommendation to bring this item forward for Board approval.
Summer Project Bid Approval and Award
Mike Duggan, Director of Facilities, presented the recommendation to approve the summer project bids. He shared that the original Facilities Master Plan was approved by the Board of Education in May 2018 based upon the Facilities Condition Assessment Report (FCAR – 2015- Wight and Company), Educational Adequacy Analysis (completed by Healy Bender), Health Life Safety Surveys (annually conducted by the ROE), Staff Surveys, Anecdotal Feedback and School Tours by committee members and the District Architect.
The 10-year project plans are revised annually, after the completion of the prior year’s summer projects. The timing of some projects may be moved due to changes in circumstances that necessitate completing them sooner or later than initially planned.
Pursuant to the Facilities Master Plan and the needs of the District, proposed capital projects were presented in October 2025 to the Finance Committee and the Board of Education, seeking authorization to prepare bidding documents and specifications for completion of those capital projects during the Summer of 2026.
Mr. Duggan noted that the District Architect, Wight and Co., oversees some of the proposed projects. The Architect prepares all plans, specifications, and bidding documents. Additionally, the Architect conducts site visits, prepares and submits all permits and payment requests, and reviews all vendor supporting documents.
The remaining recommended projects are completed in-house through cooperative purchasing, job order contracting, or cooperative contracting. Cooperative purchasing or contracting is “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments. As an example, District 181 is a member of Sourcewell, a national cooperative purchasing agency. Sourcewell streamlines the materials procurement process by developing RFPs for national, competitive solicitations that meet or exceed local requirements. Similarly, cooperative contracting is an alternative procurement method for construction-related projects. This method utilizes pre-approved and pre-qualified contractors to perform a wide variety of renovation, repair, and minor construction projects with pre-approved pricing. These projects can be overseen by the District’s Facilities Department, thereby saving the District the soft costs associated with Architect projects.
Mr. Duggan provided the committee with rough estimates and bid amounts for the projects being recommended for completion during the Summer of 2026. These amounts and some projects have been updated from what was presented in October, as more detailed information and accurate pricing have become available upon the receipt of formal quotes. It should be noted that one proposed project (HMS PA replacement) was deferred because the cost came in higher than expected. This project scope will be re examined and may be rebid at a later date. In its place, the District added a project that was deferred last year: Monroe MRC Doors to Exterior.
The sub-total estimate for the in-house/JOC projects is $2,050,295.
The estimated total for the Summer Architect-led Projects (approval in March/April) is $195,000, bringing the total to $2,263,265.
The committee agreed and supported the recommendation to bring this item forward for Board approval.
Future Agenda Items
● Monthly Financials
● Approval of the Annual iPad Device Refresh
● Full Day Kindergarten Financial Update
● Summer Project Bid Approval and Award (Architect Projects)
● Transportation Contract Option Extension and Update
● Five-Year Forecasting
Adjournment
Adam East made a motion to adjourn at 6:06 p.m. The motion carried.
https://d181.community.highbond.com/document/b8beb355-ce6f-40ce-b67e-f69f4c06bcb6/
